Oil production in Pakistan, which stood at 80,000 barrels of oil per day (bopd) at the end of FY13, reached all-time high of 98kbopd in June 2014, up 22pc. In FY14, the country produced an average 86,000 bopd versus 76,000 bopd in corresponding period last year; up 13pc. On the contrary, though total gas production marginally improved by 2pc to 3,904mmcfd at the end of FY14 versus 3,826mmcfd at start, average production during the year dropped 2pc to 3,984mmcfd versus 4,081mmcfd in FY14. Hence, cumulative hydrocarbon production in Pakistan dropped by an average 1pc to 796kboed (barrels of oil equivalent per day).

Since net realised prices on oil sales are 5.5x higher than that on gas, revenue growth from higher oil production outweighed the revenue-loss from the decline in gas production for E&P companies. In FY14, Arab Light prices averaged $108.4/bbl versus $107.8/bbl in similar period last year, while E&P companies benefited from 6pc average rupee depreciation against US-Dollar despite recent strengthening. According to energy experts, with 26pc growth in average oil production and 3pc higher gas in FY14, cumulative production of Pakistan Oilfields (POL) stood at average 20kboed versus 18kboed in FY13; up 9pc. The company benefited from key additions in Tal block (21pc working interest) where average oil production rose 63pc to 17kbopd; 20pc of total oil produced in Pakistan. Production from three new fields, namely Mamikhel-2, Maramzai-2 and Makori East-3, helped POL to offset the decline in Manzalai. In FY14, cumulative hydrocarbon production of Oil & Gas Development Company (OGDC) was down 2pc at 252kboed as compared to 257kboed in corresponding period last year. Oil production posted an increase of 2pc as it stood at 42kbopd versus 41kbopd in FY13. This was mainly due to higher production from Nashpa, Sinjhoro and Tal block, where cumulative average production rose 54pc to 37kbopd. The company’s average gas production dropped to 1,181mmcfd versus 1,212mmcfd in FY13; down 3pc. Pakistan Petroleum (PPL) recorded average production of 160kboed versus 169kboed in FY14; down 6pc. PPL’s average oil production registered highest growth of 29pc amongst our Topline E&P Universe, rising to almost 13kbopd from 10kbopd in FY13. On the contrary, gas production declined 9pc to average 825mmcfd versus 895mmcfd in similar period last year. Driven by Tal block and Naspha, the company’s oil production grew substantially during the period. However, this impact was mainly offset by 62mmcfd decline in gas production from Sui.